I have a client with a 2nd with Citi Financial Services, which is a local branch division of Citi. I received an offer for more than BPO value and can pay the first completely. The second, Citi Financial Services, a local branch, is turning down $10,000 on a $40,000 loan, with the first (CW) foreclosing in 4 weeks. Local branch reasoning, "If we let it go to foreclosure, the corporate office will credit back our branch more than $10,000 and we will lose less at the branch level."

So, yes, the local branch manager is choosing to let the property go to foreclosure and get zero for the property because they will receive a credit from Citi to compensate for their local loss.

Has anyone heard of or dealt with such stupidity?
Has anyone gotten around this?

This unfortunately happens all the time.

Why not short the first too, you might have enough leverage to sell it then.

Because the BPO came in at $17,000 more than is owed to the first.

Has anyone had success offering a promissary note to a lender in exchange for a short sale acceptance?

KC, a lot of 2nds are asking for them to release the lien. I had a homeowner offer to sign it and then at the last minuete they changed their tune and said no, we still won't approve it. I had countrywide ask, get denied by the homeowner and they still approved the short. It all depends on the bank and their guidelines at the time. I really think they are changing all the time right now.

Promissory note is a horrible thing to get your seller to sign.Instead of doing a tax writeoff the bank can now harass your seller and kick them while they are down after the sale to collect.

Submit with sepcial stip the seller WILL NOT sign a promissory note and see if they accept.Some will and some won't.If they won't your dead in the water and need to move on.

Exactly what he said! Majority of the time they want a promissory note signed is when they see the homeowners are making decent money and that their hardship isn't that bad. Majority of the time we always get that waived off.

Is the BPO value high, low or average for that house? If it's high or average try looking for low comps and dispute the value they have.

Does anyone have a contact in management a CW default services. They dropped the ball and let a listing go to SALE when they had a FMV offer in house. I found out the file had a negoiator assigned to it. Sent him several emails and he ignored them. Today sent him one and He called me almost immediately to tell me He is not allowed to respond to emails and He was gving me a courtousy call to let me know it was assigned to someone else. The I find out it went to sale and customer service tells me they tried to contact my client as they did not have my phone numner even though they had called me several times in Oct , Nov and jan1. I want to write CW and ask if this is a new policy to not contact the listing agent. If it is I am wrtiing off CW for short sales. I have a feeling someone dropped the ball and is playing CYA.

Thanks